A well-drafted shareholder agreement is fundamental to the success of a company. It sets out key details of how the business will operate, how decisions will be made, and the rights and obligations of shareholders. Having the right legal support when creating a shareholder agreement is, therefore, critical to the success of a company.
At Clifton Ingram, our experienced shareholder agreement solicitors can provide specialist support with these essential documents at any stage of the business life cycle. Whether you are setting up a company, need help interpreting the terms of an agreement or require support with any other issue relating to a shareholder agreement, we can provide fast, effective guidance and representation.
Our team can also assist with foundational documents for other types of business structures, such as partnership agreements.
For immediate support, please contact our team or you can read our FAQs to learn more about shareholder agreements.
Our team
Our share agreement specialists can offer you:
- Our expertise as one of the leading law firms in the Thames Valley and M3 Corridor
- Strong rankings in respected client guide The Legal 500, recognising us as some of the best solicitors in the region
- Decades of experience supporting a wide range of corporations with shareholder agreements
- A broader commercial perspective covering the ways the terms of a share agreement may impact your business
- A personal business legal service tailored to your unique requirements
Our expertise with shareholders’ agreements
Our team have extensive expertise in the following areas:
- Drafting shareholders’ agreements
- Reviewing and advising on the terms of shareholders’ agreements
- Advising on how to take specific actions within the framework of a shareholders’ agreement
- Amending and updating shareholders’ agreements
- Advising on the interaction between shareholders’ agreements and articles of association
Contact our shareholder agreement lawyers in Farnham, Reading and Wokingham today
Our team work from offices in Farnham, Reading and Wokingham. We advise on shareholder agreements in the UK for businesses all over Berkshire, as well as Oxfordshire, Buckinghamshire, Surrey and further afield.
Speak to one of our experts today by calling 0118 978 0099 or using the contact form at the bottom of the page and we will respond quickly.
Our experience with shareholder agreements
Clifton Ingram to add some recent examples of their work on shareholders’ agreements. If there is nothing to use, this section can be deleted.
Learn more about shareholder agreements
- What is a shareholder agreement?
- What is required in a shareholder agreement?
- What are the pitfalls of shareholder agreements?
- Why do I need a shareholder agreement?
- What are the benefits of a shareholder agreement?
- Can I terminate a shareholder agreement?
What is a shareholder agreement?
A shareholders’ agreement is a legal document that defines the relationship between the shareholders of a company and the company itself. The agreement will set out how the company should operate, how decisions should be made and the shareholders’ rights and responsibilities. It can also govern issues such as share sales, dispute resolution and how minority shareholders are protected.
A shareholders’ agreement will interact with the company’s articles of association, so this should be considered when creating the two documents to ensure that they work effectively together.
What is required in a shareholder agreement?
Exactly what should be included in a shareholders’ agreement will depend on the situation, but they typically will include provision for matters such as:
- Shareholders’ rights and responsibilities
- Decision making
- Resolving disputes
- The transfer or sale of shares
- The role of the board of directors, as well as how directors will be selected and replaced
- Protection for minority shareholders
- Protecting critical business information (confidentiality)
What are the pitfalls of shareholder agreements?
As covered above, a shareholders’ agreement will interact with the company’s articles of association. One of the key mistakes businesses can make is failing to properly consider this, ending up with conflict between the two documents. This can cause confusion and give rise to disputes. To avoid this, it is important to have the two documents drafted so that they complement each other.
Another potential pitfall is where the terms of the shareholders’ agreement are not understood by all parties. It is, therefore, a good idea to have the document clearly drafted by a legal expert and make sure that it is properly explained to all shareholders and other relevant parties.
Why do I need a shareholder agreement?
Unlike a company’s articles of association, a shareholders’ agreement is not a legal requirement. However, there are important reasons why creating a shareholders’ agreement is strongly recommended.
A shareholders’ agreement can provide clarity around shareholders’ rights and responsibilities, so people know what is expected of them and how much control they have over the business. This can help to reduce the potential for disputes that might damage the business, as can good provisions for making decisions and resolving any disputes that do arise.
Another key reason to make a shareholders’ agreement is to cover how shares should be sold. It is likely that, at some point, one or more shareholders may wish to exit the business, or new shareholders may need to be brought on board. The shareholders’ agreement can set out how this should work to avoid conflict and ensure the process runs smoothly when the time comes.
A shareholders’ agreement can also provide protections for minority shareholders to make sure their views are heard as well as supporting good governance.
What are the benefits of a shareholder agreement?
The specific benefits of a shareholders’ agreement will depend on the terms but, in general, it will help to promote good relationships between shareholders and good governance of the company, as well as minimising the risk of disputes.
Can I terminate a shareholder agreement?
Yes, there are various ways that a shareholder agreement can be terminated, including by mutual agreement of the shareholders. Individual shareholders can be released from their obligations by selling their shares and they could also lose their rights as a shareholder if they are found to have been in breach of the agreement.
Our shareholder agreement solicitors’ fees
The cost of creating a shareholder agreement or seeking advice on shareholders’ rights must be balanced against the value of the right support with these critical issues. We are happy to provide clear, upfront quotes so you can see how much our expertise will cost in advance.
For some matters we can offer fixed fees and, where this is not possible, we will endeavour to provide a realistic fee range so you have a clear picture of the likely costs involved.
To find out more about our shareholder agreement solicitors’ fees, please get in touch using the contact details below.
Contact our shareholder agreement solicitors in Farnham, Reading and Wokingham today
At Clifton Ingram, we can support you with all of your business legal needs, including in relation to shareholders’ rights and shareholder agreements in the UK. Our Corporate & Commercial Team understand how to facilitate effective business relationships, ensure the smooth running of your organisation and properly manage your risks.
As one of the leading firms of solicitors in the Thames Valley and M3 Corridor, through to Surrey and surrounding areas, we regularly advise clients across the South East, including Berkshire, Hampshire, Oxfordshire, Surrey, Wiltshire and London.
Speak to one of our team today to see how we can help on 0118 978 0099. Our solicitors will move fast to find a solution personal to you.
Alternatively, talk to someone now via our .